Two Australian states embrace grid-scale storage for power reliability

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Dive Brief:

Two Australian states are ramping up energy storage to address rising electricity costs and rolling blackouts, according to media reports.

In South Australia, the government says it will hold a competitive solicitation for a 100 MW battery storage installation and construct a 250 MW gas plant, according to Energy Storage News reports.

The state of Victoria is also investing $20 million in an effort to boost energy storage to 100 MW by the end of next year, ABC News reports.

Dive Insight:

The government announcements come days after Tesla told South Australia officials that it could install a 100 MW battery system in 100 days that would solve the state’s power problems.

South Australia has been suffering from rolling blackouts brought about by high heat and a lack of baseload power. The situation has attracted developers like ZEN Energy and Tesla, who say that battery storage could go a long way toward integrating renewables into the state’s grid and solving grid instability problems.

South Australia officials also announced plans for a 250 MW gas-fired generator to act as backup for intermittent renewables.

Officials said the gas plant would be turned on only when power shortfalls are forecasted, according to ABC. A bill is reportedly in the works to give the state energy minister more control over power dispatch, after criticisms of the Australian grid operator stemming from the power outages.